Chapter 8: General insurance overview and general insurance products Flashcards
Liability insurance
provides indemnity where the insured, owing to some for of negligence, is legally liable to pay compensation to a 3rd party.
Motor 3rd liability insurance
perils include motor accidents caused by the insured
Public liability insurance
Perils depend on the type of policy (e.g. dog bites, falling objects)
Product liability
Perils include faulty design, manufacture, packaging and misleading instructions.
Professional indemnity
Perils depend on the profession of the insured.
5 Types of liability insurance
- employers’ liability
- motor 3rd part liability
- public liability
- product liability
- professional indemnity
Employers’ liability insurance
Perils include accidents in the workplace due to negligence of an employer or employee, exposure to harmful substances/working conditions.
Property damage insurance
Indemnifies the insured against loss of, or damage to , their own material property.
6 Types of property damage insurance
- residential building
- moveable property (contents)
- commercial building
- land vehicles (car)
- marine craft
- aircraft
Financial loss insurance
Indemnifies insured against financial losses arising from a peril covered by the policy.
3 Types of financial loss insurance
- pecuniary loss
- fidelity guarantee
- business interruption
Pecuniary loss
perils include bad debts or failure of 3rd parties, includes mortgage indemnity guarantee insurance.
Fidelity guarantee
perils include dishonest actions by employees such as fraud/embezzlement
Business Interruption
a. k.a. consequential loss
- perils include fire in the insured’s own property or in a neighbouring property.
3 Types of fixed benefits insurance
- personal accident
- health
- unemployment
